04/ 02/ 2007
The Expert:
Lisa Cinella
Co-owner/Operator, M&L Transit Systems
Woburn, Mass.
The year 2001 was supposed to have been a banner year for M&L Transit Systems, the bus-service business I own with my husband, Michael. That year we purchased six brand-new buses for our booming airport division, which serviced Logan International Airport in Boston. We were just up and running--in fact the buses had only been in service for a few weeks--when Sept. 11, 2001, happened. After that dreaded day, our buses never ran out of Logan again.
The impact on our business, which we started in 1983, was tremendous. Our airport and charter divisions were the first to go, and within a year and a half, we lost funding for two other large divisions. Many of our buses were permanently parked--which is not good when you're in the transportation business. Ultimately, one-third of our fleet was affected.
We knew that for our business to survive, we'd have to take extreme measures. Unfortunately, that meant cutting half of our 60-person staff almost immediately. It was difficult to let go of some of our most dedicated, reliable employees, including my pregnant sister-in-law, our IT manager, and many drivers and mechanics who had families. But we knew we had to do it.
We qualified for a federal business-disaster loan and pumped that money back into the business. We pushed our business notes out two years, which helped cash flow, and neither Michael nor I drew a paycheck for two years. We asked our remaining team to not only give back a dollar an hour from their paychecks, but to forfeit their benefits, too. We packed lunches and got rid of the watercoolers, pay phones, newspaper deliveries and company cars. We ran as lean as possible.
A lot of people suggested that we throw in the towel and just file for bankruptcy. But giving up never entered our minds as a viable option. We had built this business from the bottom up, and there was no way we were going to quit. We're positive thinkers, but still, it was hard to not get discouraged.
Fortunately, when one of us wanted to quit, the other was there to encourage. If we ever felt really frustrated or discouraged, one of us stayed home for the day and took time to reflect away from the office.
Each month we noticed a slight improvement. During those rough years, we monitored our books first daily, then weekly, then monthly.
At first, we celebrated when we'd make a profit during a two-month period. Then, we noticed more frequent improvements as our profits recovered on a monthly basis. Finally, we reached a steady climb back--we've been profitable every month since 2005.
Today we have 45 employees, 33 buses and even a new service division. We are back to where we were prior to the terrorist attacks, but we run a much leaner business--and we're a lot smarter about it.
Owning a business that was so affected by the worst terrorist attack on our country--and living through the years that followed--is nothing we'd ever want to experience again. But the lessons we've learned about ourselves and our business have been invaluable. Along with the profits, our confidence has returned as well--and we have renewed faith in ourselves, each other and those who stuck by us.
How to Bounce Back After a Major Setback
Take a step back. Even though you feel obligated to toil longer hours during bad times, getting away is better for you and your business. You'll return with a renewed perspective. When the daily grind grew too stressful, the Cinellas spent time with their nieces and nephews--who didn't care about bills and business dilemmas. The children kept the couple grounded and calm.
Make lots of little molehills out of your mountain of a problem. Breaking an overwhelming dilemma into smaller, manageable challenges can do wonders for morale.
Search for the positives. Forced by circumstance to cut a lot of fat out of their business, the couple realized they should have tightened their belts long before their downtime began. Now that they're profitable again, they realize running leaner is just smart business.
Act immediately. After Sept. 11, 2001, the Cinellas weren't sure how the business would fare, and as a result, they played more of a defensive role with their decisionmaking. Looking back, they wish they would have taken a more proactive approach as soon as business started suffering.
Switch to survival mode. As owners, the Cinellas got rid of every business luxury imaginable--including their paychecks. These tough decisions proved the owners were willing to do everything possible to save the business, which gave the staff an incentive to help cut corners, too.
